THE BREADSTUFFS AND PRODUCE MARKETS.

Otago Witness, Issue 2689, 27 September 1905, Page 21

THE BREADSTUFFS AND PRODUCE MARKETS.

Tuesday. Private advices to hand to-day from Melbourne report the wheat market exceedingly firm. Up to 3s 8d per bushel has been paid for f.a.q. wheat, and up to 3s B^d for prime milling quality, while holders are asking 3s 9d. The impression gains ground that wheafe will touch 4s per bushel before the newgrain if, available in the Commonwealth;; there is about three months yet to run* before harvesting will become general. In, regard to the Russian harvest, the Melbourne Argus, dated 12th inst., has the following : —

Important information with regard to the wheat crops in Russia, which during the past 12 months has occupied the leading position as a wheat-exporting country, has been, received in town. Privtae cable advices state that the yield is estimated at 17,000,000 quarters less than in 1904, when the largest crop on record was gathered in that country.. On this basis the new crop may be reckoned at about 65,000,000 quarters, against 82,000,000 quarters last year. A. crop of 65,000,000 quarters is still a large one. and considerable exports will Be possible during the forthcoming season. A comparison with previous Russian crops and exports is as follows: —

The Russan rye crop is smaller than last yeai by 39,000,000 quarters.

Thursday.

As anticipated in last Saturday's report, there has been an advance in the price of flour. The directors of the New Zealand Flourmillers' Association, at their monthly meeting in Christchurch to-day, decided, in consequence of the hardening wheat market, to increase the price of flour by 10s per ton in Dunedin and by £1 per ton in InvercaTgill. The Dunedin tariff now stands: — Sacks £9 10? per ton; 100's, £10; 50's, £10 ss; 25's, £10 10s. The shipping price has been raised to £9 per ton f.o.b.

In expectation of this advance, a brisk business has been doing in floiir during the week, and local buyers — both bakers and grocers — have laid in fairly heavy stocks prior to the increase. The New Zealand Flourmillers' Association has also made an alteration in the price of pollard. This has been reduced 10s per ton, and the tariff now stands at £4 per ton, for both local orders and for shipment.

Friday.

The continued firmness in the Commonwealth markets is still the main int&rest in. the wheat situation. The only item of news from London is the sale of a wheat cargoi

lit 335, which indicates a firm tone. The Commonwealth quotations show a rise of from Id to 2d per bvishel on the week, milling . wheat in Melbourne standing at 3s 9|d, in Sydney at 3s 6^d to 3s 7d, and in Adelaide at the same rates. The Australasian reports : —

The local wheat market has continued to ghow a hardening tendency, owing mainly to the restricted supplies now offering. Sales have heen made at advancing prices., an-d the

market closes at 3s Bel to 3s B'd. Business for shipment to Europe is entirely out of the question in the present state of the local market, and shippers' operations are now practically limited to carrying out existing arrangements feu othe. destinations, including South Africa.

The Sydney Town and Country Journal thus reviews the situation: —

The Sydney wheat market has responded to the spurt in Melbourne, but m neither

case has the offer of 3s 7d (metropolitan basis) per bushel brought out many sellers, from which it may safely be rnfeired that the aggregate of milling wheat stiU unsold on farm in N.S.W. and Victoria is very small. Not only is there a decided shortage in the possession of first hands, but the holdings of trade speculators are also meagre. The only exception is an eagerness on the part of some of the southern shippers to abandon the idea of exporting to London, and to substitute the plan of reselling to mi'lers here, the London level being stiU unfavourable for charterings from this side. Private cables, however, indicate that Mark Lane has risen la lid per quarter on the week, and French wheat buyers are much m evidence, while even in the province of Castille the wheat crops were inadequate for local requireme/its, and Andalusian needs are being filled by Australian and other imported wheats. The present scarcity of wheat in Australia is mainly due to excessive exportation.

There has been more activity in the local whe-at market during 1 the past two or three days. Considerable sales of flour have in- ■ duced millers to stock up wheat, and they are now ready buyers of prim© millinggirtain at up to 3s on trucks. Holders, on the other Hand, are now asking 3s Id, and the offerings at buyers' limits a-re email. Owing to purchases for shipment both for London and South Africa, the South Canterbury markets are very firm, whilst North Canterbury grain is to a large extent sprouted and unsatisfactory in quality. Tine wheat market shows, decided signs of • «*rengfch, and it is not unlikely that New Zealand will follow tho trend in Australia, where a 4s market before the new harvest ' is already freely prophesied. - The advance in milling wheat has firmed the - ohick wheat market, and good whole fowl feed is worth 2s lid to 3s ex store, there being little available at the lower J price. ' As already noted, there has been an adva«oe in the price of flour. The directors of the New Zealand Fourmillers' Association, at their monthly meeting in Christchurch on Thursday, decided, in consequence -of the hardening wheat market, to increase 'the price of flour by 10s per ton in Dunedin "and by £1 per ton in Invercargill. The Dunedin tariff now stands: — Sacks, £9 10s per ton ; 100's, £10 ; 50's, £10 ss ; 25's, £10 10s. The Invercargill price for sacks is £10. The shipping price has been raised to £9 per ton f.o.b. In expectation of this advance, a brisk business has been doing in flour during the week, and some buyers laid in stocks prior to the increase, whilst others are left lamenting.

The New Zealand Flourmillers' Association has also made an alteration in the price of pollard. This has been reduced 10s per ton, and the tariff now stands at £4per ton for both local orders and for shipment. Bran is unaltered at £3 15s per ton for local orders, and £3 10s per ton f.o.b. for shipment.

Th© oat market is quiet but firm, available stocks being very short. A fair costal trade is doing at up to 2s o£d f.0.b.,5.i. for B grade. The Bluff quotation remains afc 2s f.0.b.5.i., although orders of Is ll^d would probably lead to business. The Dunedin price ex store for B grade Gartons is le lOd to Is 10^d. Sparrowbills are practically unobtainable.

The oatmeal market continues in its former unsettled state, and quotations are being made from £9 10s to £10 10s per ton, according to the fancy of buyer and seller. Pearl barley is quoted at £13 to £13 10s.

The importations from California, together with the slump in the markets North and South, have had their effect on local prices, and cuotations show a decline of from 25s to 30s per ton on the week. Derwenfcs are selling at from £10 5s for a line up to £10 10s for smaller quantities. Opinions differ as to the future of the market, but the general opinion obtains that prices will settle down in the neighbourhood of £10 in the meantime, with the probability of an improvement later on. Much depends upon the importations from California and the price afc which tubers ca.n be landed. Tho Sydney Town and Country Journal remarks :

The shipment of 2000 cases of potatoes from 'Frisco consists of Burbanks. a long, firm, white tuber, resembling the kidney in choice table qualities. There is inducement for reshipping from Sydney to New Zealand, where ordinary " locals" are worth £9 10s" to per ton, owing to the partial failure of the New Zealand crops through rotting in the ground from excess of moisture.

There is a great scarcity of butter in the local market ; first-grade local factory is unobtainable, and a consignmc.it of North Island factory bulfe has found a ready sale at 11^-d. Farmers' pats are in short supply, and command 9^d to 10-ld. Separator salt has been sold at up to lid. The local chee-so market continues firm. Factory mediums are quoted at 6d and Akaroa at sgd.

Eggs are slightly firmer at 9d to 9£d per dozen. Preserving and chilling arc becoming- general, and this has steadied the market.

Current quotations for poultry are as follow: — Hens, 2s 3d to 3s; roosters, 3s 3d to 3s 9d; ducks, 3s to 4-s; geese, 4s to ss; turkeys— hens, sd, gobblers 7d per lb.

Pigs are plentiful, baconers selling at 3^l to 3|d overweights, and underweights at 3d.

Hams are quoted at T^d and bacon at 7cl.

Chaff has hardened, and prices are as follow: — Prime oaten sheaf, £3 5s to £3 7s 6d ; medium to good. £2 10s to £2 15s. In conseauence o£ orders for Noumea, by

the St. Louis now loading at Dunedin wharf the price of prime hay has firmed, and it is now quoted to £2 15s to £3.

Saturday.

Latest London cables leport the wheat market quiet but I'mm, owing- to los-> favourable reports fiom Piussia, the cessation of orders from India, and the strong tone of the American market.. It is also stated that the Germans are buying freely in anticipation of an increase in fluty of 4s 6d per quarter, commencing in March. Tho trend of prices is &een in the fact that. 33s 3d is asked for Australian afloat, spot Australian being quoted at 33s to 33s 6d. In the abovo conned ion the following extracts from '" Becibohm'e" Corn Trade Li=t, dated Louclon, August 11, will bo read with interest : —

Belgium and Germany. —A short wheat crop appears to be expected in Belgium, and in Germany there has been much damage clone to the quality by the unlavourable vealhor.

India. — According to cabled leporls received this week, the absence of the tibual rains ;n the principal districts is very serious, and the natives are" holding back their wheat*-, with the result that the prices a e lccd by shippers are now quite above the level on this side, which will tend to restrict shipments. The total shipment since April 1 is 2,875,000 quarters, against 3 780,000 quarters

Ip.st year for the (Oiicsponding period. A decided falling ofi horn last yeai's big shipments (9.000.000 quarters) is now geneiaily expected.

Wheat. — A quiet feeling has continued to prevail in the wheat markets during the past week, but not without a tinge of steadiness due to the broken weather, the continued doubtful condition of the French and Kussian crops, and the unfavourable reports from Tndia. There lias been little disposition to buy beyond immediate requirements, and now that the American crop is officially nidicated to be at least 675,000,000 bushels, it is probable that there will be still less desire to do so. It should be remembered that the result of the American spring wheat crop is still in doubt, it being doubt 'ess fresh m the nimds of the trade thit at this time

last year the mininmni crop estimates pointed to 600,000,000 bushels, whereas the result was about 75,000,000 bushels less, so serious was the damage to the spring wheat found to be. A crop of 675,000,000 bushels would, however, it' is well to state, place the U.S. on the footing of a large exporter in the coining season, the surplus in such a case being not less than 150,000,000 bushels, whilst from present indications it is also po&sible that Canada may double her export of about 2.500,000 to 3.000,000 quarters of the past season. The position of wheat in the U.S. on July 1 may be put statistically as follows, compared with the two previous years, on a basis of 675,000,000 bushel cropin bushels, 000 omitted:— •

It seems quite clear that if this showing be correct American prices will have to come down to an export level, tor there is nothing at present visible to induce European buyers to rise to the American level of price, which is still too high, although some 3c to 4c lower than a week ago.

Local cornsaek importers are now beginning to wonder how long the present high rates are likely ro eontinuf especially as practically the whole of mo colony's requirements for the season have yet to be ccntracted for

Messrs Harty and Co. have received a cable from Calcutta stating that the jute crop is an 87 per cent. one. This scarcely confirms the expectations of the '"bears" on tho Calcutta market, who have evidently been reckoning on a fall in the pi ice of jute to bring down the price of cornoacks, and thus extricate them from their difficulty. We referred last week to the excitement in the cornsack market in Melbourne and Sydney, owing to the fact that one of the leading Calcutta firms was not completing its contracts made with importers for August shipments. It is new stated that the "bulls" in Calcutta formed a concerted plan to "squeeze" the " bears," and have, so far as they were able, done so without mercy. It was rumoured in Sydney that £10,000 was the Mm offered by the "bear" firm for the cancellation of contracts, which was said to be about 8s 6d per bale, but that several importers interested considered that nothing: less than £20,000 would be satisfactory. The Sydney Morning Herald reports : —

Owing to rumours that offers had been received from Calcutta as a basis for settlement of short shipments, which were not considered satisfactory and which were less favourable than had been anticipated, there was rather more demand for cornsacks yesterday. It was reported that 7s 3d was offered for August shipment without finding sellers and that 6s lOd to 6s lid could have been obtained for September-October. Prices, however, were veiy irregular. The Calcutta market is still firm, with the equivalent of Gs ll£d Sydney, quoted for September, and Cs 9ld for October.

L 905 1904 1903 L 902 .901 L9OO .899 .89S :897 aCrop. Quarters. 65,000.000 82,000,000 76.470,000 75,683,000 53,268,000 52,709,000 56,590,000 57,231,000 46,731,000 Esparis, . Quarters. 23,000,000 17,500,000 16,500,000 10,250,000 9,250,000 7,250,000 8,000,000 ' 15,750,000

I»05/6. 1904/5. Crop 673,000 520,000 Visible and invisible stocks on July 1 .. 50,000 70,000 1903/4. 600,000 75,000 Total .. .. 725,000 590,000 675,000 tfonie consumption 505,000 495,000 Lieserve stocks on July 1 following 75,000 50,000 Exports .. .. *1 15,000 45.000 465,000 70.000 120,000 Total .. .. 725,000 590,000 * Estimated surplus. 675,000